Social Security Schemes ,Pension and Elderly policy in Lao ......I. Overview of Social Security Coverage, Policy Pension and Elderly in Lao. P.D.R •Prime Minister's Decree No. 178/PM

Social Security Schemes ,Pension and Elderly policy in

Lao P.D.R

Mr. Prasong VONGKHAMCHANH

Deputy Director General of Social Security Department

National Director of ILO Social Security Project

Content

• Overview of Social Security Coverage in Lao. P.D.R

• Social Security Schemes for Civil servants

• Social Security Schemes for Enterprises

• Social Security Schemes Development

• Policy Pension and Elderly.

I. Overview of Social Security Coverage, Policy Pension and Elderly

in Lao. P.D.R

• Prime Minister's Decree No. 178/PM dated 30 November, 1993 on "Social Security Scheme for Civil servants"

• Prime Minister's Decree No. 207/PM dated 23 December, 1999 on "Social Security Scheme for Enterprises"

• Public Health Minister's Regulation No. dated on "Community Based Health Insurance"

• Prime Minister’s Decree No. 156/PM dated 8 October 2004 On the Approval and Declaration of Application of the Nation Policy towards the Elderly in the Lao PDR.

• Prime Minister’s Decree No 194/PM, dated 12 November 1994 On policy Pension and State Employees.

1. Social Security Scheme for Civil servants

1.1 Legal Basis: PM's Decree No.178/PM

dated 30 November, 1993.

Target group : Civil servants working for

Party, Government, Mass

Organizations, military and

police.

1. Social Security Scheme for Civil servants (Cont’d)

1.2 Benefits Provided

• Health care insurance (Ceiling-based reimbursement model)

• Work Accident compensation (paid-6 month leave)

• Maternity Benefit ( Paid-3 month leave) + birth grant (60% of minimum wage)

• Invalidity pension from battle field


(Cont'd)

1.2 Benefits Provided (Cont'd)

• Old age pension (Male:60 y, Female:55 y)

with 25 working years

• Funeral Grant = Last monthly salary X 10

• Lump sum survivor's benefit (Depending on working years )

• Pensioners' Orphans allowances


(Cont'd)

1.3 Financing System

1.3.1 Sources of income for Public Sector Scheme

Gov’t’s subsidies 6% from Civil

Servants’ basic salary

Social Security Fund

1.3.2 Expenditure of SS Fund

Soc Sec Fund

Paid by ministries

Age pension

Invalidity

Pensioners Child

Allowance

Orphans 10%

Expenditure

Paid by SSD

Expenditure

Health Care

Maternity

Funeral Grant

Prosthetic Limbs

Regular

Payment

Irregular Payment

1. Social Security Scheme for Civil

servants (Cont'd)

1.4 Implementing Agency

• Social Security Department (Ministry of

Labor and Social Welfare)

• Budget Department (Ministry of Finance)

• Provincial Labor and Social Welfare Department

• District Labor and Social welfare Bureau

II. Social Security Scheme for Enterprises

1. Legal Basis: PM's Decree No.207/PM dated 23 December, 1999.

• Target group : SOE (s), Joint and privates

enterprises employing 10 or

more employees.

II. Social Security Scheme for Enterprises (Cont'd)

2. Implementing Agencies

• Managed by Social Security Organization

(SSO)

• Tripartite Board of Directors (Supreme Body)

• Management Team

• Provincial Branches (Savannakheth; Khammouane)

II. Social Security Scheme for Enterprises (Cont'd)

3. Benefits provided:

(1)-Funeral Benefits

(2)-Medical Care Benefit

(3)-Sickness benefit (Temporary loss of working

capacity)

(4)-Maternity Benefit

(5)-Employment Injury &

Occupational Diseases Benefit

III. Social Security Scheme for Enterprises (Cont'd)

3. Benefits provided (Cont'd):

(6)-Invalidity Benefit (Permanent loss of working

capacity)

(7)-Retirement Pension

(8)-Survivors' benefit

The following benefits shall become effective in

the forthcoming years.

(9)-Child allowances

(10)-Unemployment Benefit

III. Social Security Scheme for Enterprises (Cont'd)

4. Contribution & Fund Allocation

PM's Decree No.207/PM

Article 17. Contributions

Contribution are paid by employers, employees and voluntarily insured persons to each fund of Social Security Fund.

Article 19. Contribution to the Compensation Fund

For employment injury or occupational diseases, employers alone shall pay contribution to the Compensation Fund.

4. Contribution & Fund Allocation (Cont’d)

Employer(5.0 of Total Pay)

Employees(4.5% of Total Pay)


H I AcctS/T Benefits

Acct L/T Benefits

Acct

EI AcctAdmin Acct

4%2.14%

0.5%

0.86 %2%

Entitlement to each benefit

Benefits Length of contribution payment

(1)-Medical Care benefits >= 3 months within the last 12 months

(2)-Sickness benefit >= 3 months within the last 12 months

(3)-Maternity benefit >= 9 months within the last 12 months

(4)-Funeral benefit >=12months within the last 18 months

(5)-Employment Injury No contribution period

requirement

(6)-Retirement Pension At least 5 years

(7)-Survivors' benefit At least 5 years

(8)-Invalidity Benefit At least 5 years

III. Social Security Schemes Development

1. Background

• ILO Social Security Project phase II

• Donor: Luxembourg

• Executing Agency: ILO

• Implementing Agency: Ministry of Labor & Social Welfare

• Duration: May, 2002 – August, 2007

III. Social Security Schemes Development (Cont'd)

1.Background (Cont’d)

• Objectives of the Project

(1)-To extend SSO’s Coverage to Provinces

(2)-To reform social security scheme for

public sector

(3)-To formulate social security national

plan for non-covered population

(4)-To formulate policy on medical treatment and

compensation loss as a consequences of a

motor vehicle accidents


1. Reform of Social Security Scheme for Public Sector

1.1 The Decree 178/PM issue in 1993 was replaced by the Decree No. 70/PM issue on April 20, 2006


1. Reform of Social Security Scheme for Public Sector (Cont’d)

1.2 Benefits provided by the Decree 70/PM

(1)-Health insurance

(2)-Child Birth Benefit & Child birth grant

(3)-Employment injury & Occupational

Diseases

(4)-Invalidity Benefit



1.2 Benefits provided by the Decree 70/PM

(5)-Sickness benefit

(6)-Old age pension benefit

(7)-Suvivors’ benefit

(8)-Funeral grant



Government(8.5 of Total Pay)

Civil servants(8.0% of Tot Pay)


H I AcctS/T Benefits

Acct L/T Benefits

Acct

EI AcctAdmin Acct

4%2.0%

0.5%

2.0 %8.0%

1.3 Contribution & fund allocation

III. Social Security Schemes Development (Cont'd)1. Reform of Social Security Scheme for Public Sector (Cont’d)

1.4 Social Security Fund Management

State Authority of Social Security (SASS):

- Financial autonomous organization under the guidance of the Minister of Labor and Social welfare

III. Social Security Schemes Development (Cont'd)1. Reform of Social Security Scheme for Public Sector (Cont’d)

1.4 Social Security Fund Management (cont’d)

Hierarchy of SASS- Executive Board

- Management Team

- Branches in provinces, towns and districts

1. Benefits for War Victims.

- Transferring state-owned houses and land where they have lived to their proper ownership.

- Building up new village with new houses for those who have no their own yet.

- Centers for people with disability have been established both in Central city and in provinces .

V. Welfare Policy for Vulnerable groups

2. For Elderly and Handicapped

The Lao government:

- Established the National Policy towards the elderly in Laos .

- Collaborated with International Organization for the Elderly in Asia Pacific.

- Issued the Prime Minister Decree No. 18/PM, dated June 1995, on the Establishment of National Commission for Handicapped.

3. For Elderly and Handicapped (Cont’d)

The Lao government:

-Launched a pilot project on home care.

- Implemented a pilot project on elderly life quality improvement.

- Has created jobs opportunity for elderly related to their work skills.

- To assist the residents who encounter natural catastrophe.

- To assist poor people who lack food in remote areas.

- To assist resident who have relocated and have no permanent job.

4. Policy for another groups

5. problems of Elder people

- Poor living condition of elder people in the urban area.

- No care from their children harms their physical and mental condition.

- Not enough experience to take care of elderly.

- Lack of financial support.

- Lack of information on taking care of elderly.-

6 Challenges

• Increasing number of elder people.

• Social-economic disparity between developed and developing country.

• Not enough Health care provision and poverty reduction.

7. Measure

- Mobilizing the children, community, mass organization, both state and private sectors to take responsibilities and take care of elderly.

- To improve health care for elderly

- To create a favorable opportunity for elderly to generate incomes.

- To mobilize volunteers for taking caring of elderly in

villages.

8. Future Plan.

• Developing and managing innovative, culturally appropriate, cost effective, sustainable and repentant older people.

• Producing training manuals, resource materials/toolkits etc. on home care and community care.

• Sharing experiences, information and technical with ASEAN member Countries and another Countries.

9. Mission

- To care for Disadvantage Older people

- To encourage the existing family and Community support.

- To improve Health Care access.

- To exchange experience from country experience.

Thank You Very Much !!!!

Social Security Schemes ,Pension and Elderly policy in Lao ......I. Overview of Social Security Coverage, Policy Pension and Elderly in Lao. P.D.R •Prime Minister's Decree No. 178/PM

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